Milo & Kate, also known as Project Milo, is once again rumoured to have been cancelled. According to anonymous sources speaking to Eurogamer, all development on the project stopped yesterday and the team that worked on it will work on the Fable series.
The technology in Milo & Kate, where we with the aid of Kinect interact with a boy, is apparently going to be used in a mini-game in an upcoming Fable release.
Microsoft has chosen not to comment on these rumours.